New ships welcome provided they are not flying a flag of convenience

I NOTE with satisfaction some fairly recent comments by Minister of State for Transport Noel Ahern on the news that seven Irish-based shipping groups are investing about €600 million in the expansion of our shipping industry.

While not all of these shipping groups are Irish, it is great to see this investment as it is a vote of confidence in our economy, as well as the very welcome creation of jobs.

I understand that in the first six months of this year, 21 new or second- hand ships have been acquired and a further 27 ships are expected to arrive in the next two years.

It would be nice to see all of these ships registered in Ireland and flying the Irish tricolour.

As such they would be subject to Irish law wherever they end up trading in the world and that would have a positive impact on their operation, particularly as regards crew welfare. Of course, given the very large amount of foreign investment involved, I accept it would be fairly reasonable for these ships to operate instead under the flag of the country — or one of the countries — where the finance is coming from.

These countries, like Ireland, have good laws and employment standards.

My great fear, based on past experience, is that many of these ships will not be registered in and operate under the flag of Ireland or indeed the country where the investment originated.

I fear a lot of them will end up just like many beneficially-owned Irish ships do today operating under the notorious flag of convenience system.

This is a system where shipowners are allowed to register and flag their ships in countries that, in exchange for the registration fees, offer a minimum of laws and regulations that have to be applied and which take little or no interest in how the crews of these ships are treated. Consequently, a large proportion of the jobs that this investment will create could be at exploitative wage rates and miserable working conditions.

In fairness, I am sure this is not what Minister Ahern intends, but that is what we could end up with.

Unfortunately, Mr Ahern’s Government, in making tax concessions to the shipping industry, is ‘flag-blind’

Any shipowner who meets some basic conditions will be allowed these concessions, and it does not matter if it’s the flag and laws of Ireland or some EU country, or the flag of some notorious regime like — say — Burma or North Korea.

Tony Ayton

Retired ITF inspector for Ireland

45 Avondale Lawn

Avondale

Waterford